ACCA Strategic Professional · Advanced Performance Management · Performance optimisation in specific contexts
Brightpath Charity reports to donors using a dashboard that shows only the percentage of income spent on programmes, which is currently 92%. Beneficiaries argue that this hides whether the programmes actually improve lives. Which change to the data-driven report would best address this criticism?
Adding outcome and impact measures, such as beneficiary progress, alongside the programme spend ratio best addresses the criticism. The ratio only shows how inputs are used, not whether the charity achieves its mission, so stakeholders need effectiveness data as well as efficiency data.
- AAdd outcome measures, such as beneficiary progress and impact indicators, alongside the efficiency ratioCorrect
- BIncrease the programme spend percentage to 100%
- CReport only administration costs
- DReplace the dashboard with an annual narrative with no figures
Explanation
The programme spend ratio measures input efficiency, not effectiveness. Adding outcome and impact measures addresses beneficiaries' concern about results while still informing donors. Pushing the ratio higher or dropping numbers does not show effectiveness.
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